DPM Dundee Precious Metals Inc

(All monetary figures are expressed in U.S. Dollars unless otherwise stated)

Dundee Precious Metals Inc. (TSX: DPM)(TSX: DPM.WT)(TSX: DPM.WT.A) ("DPM" or "the Company") and its wholly owned subsidiary Chelopech Mining EAD ("Chelopech") are pleased to announce today the signing of an aggregate of $66.75 million in long-term loan agreements with the European Bank for Reconstruction and Development ("EBRD") and Unicredit Bulbank ("UCB"). The proceeds from this loan financing will be used to retire $16.25 million of existing EBRD indebtedness and to assist in the financing of the Company's $150 million Chelopech mine and mill expansion in Bulgaria, to double mine and mill output to two million tonnes of ore per year. Construction on the expansion project, which is well underway and on budget, is expected to be completed at the end of 2011.

"The signing of this key debt financing arrangement for the Chelopech expansion project with the EBRD and UCB is a significant milestone in the continued development of the Chelopech mine, said Jonathan Goodman, President and CEO of DPM. We appreciate the EBRD's continued partnership with DPM on this important project and welcome UCB's interest and participation. We are very pleased to have such a supportive and committed lending group."

"The EBRD is pleased to support Chelopech Mining in its drive to increase ore production with the implementation of the best available technology. We are delighted to partner with UniCredit Bulbank in financing this important project that will help Chelopech Mining to improve its operations and raise environmental standards", said Kevin Bortz, EBRD Director for Natural Resources.

"The agreement that we are now signing is proof that good projects may rely on financing from the banks. Such good projects and the entrepreneurship will take Bulgaria out of the economic crisis. By joining EBRD in this loan arrangement, UniCredit Bulbank underlines its engagement to the sustainable development of the Bulgarian economy", said UniCredit Bulbank CEO and Chairman Mr. Levon Hampartzoumian.

The Loans, which are guaranteed by DPM and secured by a share pledge, are repayable in ten equal semi-annual installments, commencing June 2013 and bear interest at a rate of LIBOR plus 3.25% until project completion and LIBOR plus 2.80% thereafter. The UCB loans are subject to a cash sweep which obligates Chelopech to prepay up to an aggregate amount of 30% of Chelopech surplus cash flow. This mandatory prepayment is limited to the equivalent of two years of UCB loan repayment. As part of the financing, DPM and/or Chelopech is required to provide price protection on 15% of Chelopech's 2012, 2013 and 2014 projected copper production. DPM does not hedge its gold production. Financial covenants at the Chelopech level include (i) minimum forecast debt service cover ratio of greater than 1.25:1, (ii) current ratio greater than 1.2:1, (iii) net worth of at least US$45 million and (iv) reserve tail equal to or exceeding 30%. DPM financial covenants include (i) current ratio greater than 1.5:1 and (ii) net worth of at least $200 million. Costs of this arrangement include a 2% front-end commission.

European Bank for Reconstruction and Development (www.ebrd.com):

The EBRD is an international financial institution that supports projects in 29 countries, from central Europe to central Asia. The Bank promotes entrepreneurship and fosters transition toward open and democratic market economies. The EBRD provides project financing for the financial and industrial sectors, both new ventures and existing companies.

UniCredit Bulbank (www.unicreditbulbank.bg):

UniCredit Bulbank is the biggest Bulgarian bank in terms of assets, exceeding BGN 11 billion as of end of June 2010. The Bank is servicing over one million individual clients and households, high profile private customers, small and mid-sized businesses, larger domestic and multinational corporate entities, municipalities and budget enterprises.

Dundee Precious Metals (www.dundeeprecious.com):

Dundee Precious Metals Inc. is a Canadian based, international mining company engaged in the acquisition, exploration, development, mining and processing of precious metals properties. The Company's operating interests include its 100% ownership of Chelopech Mining EAD, its principal asset being the Chelopech mine, a gold, copper, silver concentrates producer located east of Sofia, Bulgaria, a 100% ownership of Namibia Custom Smelters (Pty) Ltd., a concentrate processing facility located in Tsumeb, Namibia, and a 95% interest in Deno Gold Mining Company CJSC, its principal asset being the Kapan mine, a gold, copper, zinc, silver concentrates producer located in southern Armenia. DPM's interests also include a 100% interest in the Krumovgrad development stage gold property located in south eastern Bulgaria, near the town of Krumovgrad and certain exploration and exploitation properties in Serbia.

FORWARD-LOOKING STATEMENTS

This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices and other factors described above and in the Company's most recent annual information form under the heading "Risk Factors" which has been filed electronically by means of the Canadian Securities Administrators' website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Contacts: Dundee Precious Metals Inc. Jonathan Goodman President & Chief Executive Officer (416) 365-2408 jgoodman@dundeeprecious.com Dundee Precious Metals Inc. Stephanie E. Anderson Executive Vice President & Chief Financial Officer (416) 365-2852 sanderson@dundeeprecious.com